16.07.201507:46 Forex Analysis & Reviews: Technical analysis of GBP/USD for July 16, 2015

Long-term review

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Weak UK data dragged the price below 20Dsma. However, it managed to close with mild gains.

There were 1.85 million unemployed people. This was 15,000 more than for 3 months to February 2015. That is the first quarterly increase since January to March 2013. The proportion of economically active population who were unemployed (the unemployment rate) was 5.6% compared to the readings for the 3-month period to February 2015, but lower than a year earlier (6.5%).

S&P lowered its outlook for the British GDP growth rate to 2.6 % (previously expected growth of 2.8%), but improved the eurozone GDP forecast.

Today, traders eye US unemployment claims and Philly Fed Manufacturing index. The Federal chairwoman Yellen testifies before Senate Banking Committee.

Technical view: The cable gave a breakout from the bullish broadening wedge and closed above that. Momentum is back to the cableon the back of Greece's optimism. The trend favors buying on dips with sl 1.5450. The 50Dsma is found at 1.5555 and 100Dems is found at 1.5440. The 50Wsma is seen at 1.5600.

We are optimistic in our long-term forecast.

Intraday support is found at 1.5620 and 1.5600 50Wsma. Resistance is seen at 1.5650 and 1.5675. For today's session, fresh buying is available above 1.5650 towards 1.5675, 1.5700, and 1.5735 during a day, in the extreme case we can see 1.5790. Before moving up further, we expect the cable to re-test support levels of 1.5540 and 1.5500.

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